Fitch Ratings has assigned Siyapatha Finance PLC (A(lka)/Stable) proposed Sri Lankan rupee subordinated listed debentures an expected National Long-Term Rating of ‘BBB+(lka)(EXP)’.
The notes, which will total up to LKR1.5 billion, will mature in five years and carry fixed coupons. The debentures will be listed on the Colombo Stock Exchange. The proposed issue will improve Siyapatha’s Tier 2 capital base, with the proceeds used to fund loan- book growth.
The final rating is subject to the receipt of final documentation conforming to information already received.
Siyapatha’s Sri Lankan rupee subordinated debentures are rated two notches below its National Long-Term Rating anchor.
This reflects Fitch’s baseline notching for loss severity for this type of debt and our expectations of poor recoveries.
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